Thomas Murray offers depositary banks and transfer agents an AIFMD and UCITS V compliance service
10 Mar, 2015
Under the Alternative Investment Fund Managers Directive (AIFMD), which came into full effect in the European Union (EU) in July 2014, depositary banks are responsible for ensuring the managers of alternative investment funds such as hedge and private equity funds comply with the obligations under the prospectus issued to investors.
Depositary banks also have to ensure the assets of the fund are kept safely, and monitor cash payments flowing into and out of the fund to ensure cash is not being misappropriated. The UCITS V directive, which member-states of the EU must transpose into national law by 18 March 2016, extends these obligations to mutual funds.
Depositary banks vary widely in size and capability, from major global custodian banks to private banks servicing funds distributed by their in-house investment or wealth management arms. For them, AIFMD and UCITS V present a substantial compliance challenge. Among the largest challenges they face is the obligation to monitor the transfer agents they appoint.
Transfer agents, which maintain registers of investors, and collect subscriptions to funds and pay redemptions from funds, are not easy to access. Although the transfer agency business is dominated by the major global custodian banks, such as BNY Mellon, J.P. Morgan and State Street, there are hundreds of smaller transfer agents servicing a wide variety of funds.
It follows that depositary banks are looking for a convenient and efficient way of meeting their obligation to monitor transfer agents, while transfer agents are looking for an efficient and convenient way of giving large numbers of depositary banks the information they need to fulfil their obligations under AIFMD and UCITS V. Thomas Murray Data Services has developed an AIFMD and UCITS V transfer agent monitoring service to meet these twin needs.
“As part of our efforts with our depositary clients, we have been speaking to hundreds of transfer agents,” says Llew Walker, director at Thomas Murray Data Services (TMDS). “Most are looking for ways to comply with the directives. Only a few are looking for ways to avoid the burden. We are speaking to as many transfer agents as we can to see how we can help them to meet the needs of our depositary banking clients.”
Centralising the data collection process as a global transfer agent monitoring service enables the depositary banks to carry out their obligation to monitor the safety of assets registered by transfer agents and the flows of cash through transfer agents more efficiently. For transfer agents, the benefit is that they can satisfy the demands of multiple depositary banks via a single questionnaire devised, collated and distributed by TMDS.
Tags:Thomas Murray Data ServicesAIFMDUcits VEU